The euro edged higher against the dollar on Monday after sharp losses late last week, with analysts urging caution in the absence of US investors over the national holiday. At around 09:10 in the morning, the exchange rate of the euro increased by 0.26% and made 1.0441 dollars.
“US National Day will see activity slow on Monday and the EUR remains around $1.0430 amid a lack of risk appetite.“Analysts comment on Sucden. The euro fell to $1.0366 on Friday, coming dangerously close to its year low of $1.0350.
Analysts are already focused on Friday’s US employment data. “Employment data more important than in recent months as worries grow over recession riskadds MUFG analyst Derek Halpenny.
Following the situation in Ukraine
Until then, the market will study the minutes of the last meeting of the European Central Bank on Wednesday and Thursday. In addition, traders were following the situation in Ukraine and the lack of gas supply to Europe. “The gas crisis will be specific to Europe“, Commerzbank analyst Ulrich Leichtman emphasizes, who believes that in the case of a long-term shortage in the Old Continent.I expect the euro to fall below parity with the dollar“.
A rise in the Australian dollar
Finally, the Australian dollar rose (+0.61% to $0.6856), but the currency hit its lowest level against the greenback since June 2020 on Friday, despite a significant rate hike by the Bank of Australia expected on Tuesday. “The recent decline in iron ore prices“, of which Australia is the exporter,does not play into recession fearscurrency, comments SwissQuote analyst Ipek Ozkardeskaya.
Source: Le Figaro
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